Macmahon at Central Tanami Gold Project: decline scope and risks for mine planners
Reviewed by Joe Ashwell
First reported on International Mining – News
30 Second Briefing
Macmahon Underground Pty Ltd has been named preferred mining contractor by the Central Tanami Project Joint Venture between Tanami Gold NL and MGX Resources Limited for the Groundrush exploration decline in the Tanami region. The scope centres on developing an underground exploration decline to access the Groundrush orebody, signalling a shift from surface exploration to underground resource definition drilling. Contractors and suppliers should anticipate demand for decline development services, ground support, ventilation, and underground power reticulation suited to remote, arid conditions in central Australia.
Technical Brief
- Macmahon Underground’s scope is limited to contract works for the Groundrush exploration decline only.
- Appointment is currently at “preferred contractor” status, implying commercial terms and final contract still to be executed.
- Work package sits within the Central Tanami Project Joint Venture structure between Tanami Gold NL and MGX Resources.
- Contract will be executed by Macmahon Holdings via its specialist underground subsidiary, rather than the surface mining arm.
- Groundrush decline works are framed as an early-stage component of the wider Central Tanami Project development.
- Selection of a single preferred contractor at this stage suggests a negotiated, not multi-package, development approach.
- For similar remote Australian gold projects, early underground decline contracts often precede larger plant and open-pit EPCM awards.
Our Take
Gold projects dominate our mining coverage, and the Central Tanami Gold Project adds to a cluster of Australian gold developments where contractors like Macmahon Holdings Limited are being brought in early to de-risk underground access and schedule.
The Tanami region is emerging in our database as a technically challenging but high-potential gold belt, so Macmahon Underground Pty Ltd’s work on the Groundrush exploration decline project is likely to position it for follow-on production and development packages if the joint venture advances.
With both Tanami Gold NL and MGX Resources Limited tied into the Central Tanami Project Joint Venture (CTPJV), contractor performance on this initial decline phase will likely influence future tendering leverage and contract structuring across other gold assets they control or farm into.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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